Why Klaviyo, Inc. (KVYO) Is Among the Undervalued Software Stocks to Buy Now

Klaviyo, Inc. (NYSE:KVYO) is among the undervalued software stocks to buy now. On June 24, Callie Valenti from Goldman Sachs assumed coverage of Klaviyo, Inc. (NYSE:KVYO) with a price target of $26, implying approximately 54% upside. In a research note, the analyst highlighted the stock’s 30% decline following Q1 earnings. This was mainly due to the planned CFO departure and factors that added uncertainty around sequential and year-on-year trends, the analyst added.

The firm’s Buy rating is driven by Klaviyo, Inc. (NYSE:KVYO)’s exposure to a range of growth drivers, reinforcing a strong underlying business. This is supported by the company’s revenue growth, which remains at a high 20% pace, Valenti said.

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Despite the negative returns, Klaviyo, Inc. (NYSE:KVYO) is a consensus Buy. The stock has 77.41% upside potential at the 1-year median price target of $30. With a forward P/E of 20.66 and quarterly revenue growth (yoy) of 27.90%, KVYO is one of the undervalued software stocks to buy now.

Klaviyo, Inc. (NYSE:KVYO) is a Massachusetts-based cloud-based SaaS platform offering CRM, Klaviyo Data Platform, Advanced KDP, and Marketing Agent, among others. Incorporated in 2012, the company mainly serves entrepreneurs, SMEs, and other enterprises.

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